23rd Jan 2018 January Blog: Our market forecast for 2018

It’s not all doom and gloom here in Central London. We all know that Brexit uncertainties and additional 3% SDLT charge for second homeowners, has culled a large portion of buy-to-let and foreign investors who would have previously snapped up high-value properties to get a foothold in London.

However, this has paved the way for canny domestic buyers looking for a permanent resident who will take advantage of this rare opportunity to purchase at below peak prices. Especially now that a majority of the game players have left the competition.

Properties at the lower to mid-level of the market will remain healthy, growth will slow but remain steady. The government’s abolishment of SDLT for first-time buyers (up to £300,000 and 5% on the difference above this amount to a maximum of £500,000), although not relevant for the higher value properties here in Pimlico, should have a positive effect on the low end of the market.

We have seen home-grown buy to let investors coming back to the market. They are cashing in on low mortgage rates before they rise again, as it has been speculated to do, throughout the coming years. This makes, smaller, rentable properties their prime target.

Forecast for 2018, realistically priced properties will attract serious buyers. Activity will be pronounced more so in the lower to mid-range of the property market. Higher value properties will sell but achieving the right price will take a little longer than in previous years.